Dunn, Rudisill and Teitelbaum Quoted on CARES Act Loans and Benefits Provisions
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Akin Gump public law and policy partners Brendan Dunn and Zach Rudisill and senior counsel Josh Teitelbaum have been quoted in the Fast Casual article “How the CARES Act can help large restaurant brands” from a recent National Automatic Merchandising Association webinar in which they participated. The three provided an overview of some of the loans and benefits available as part of the recently passed CARES Act.
Dunn pointed out that the new law appropriates at least $454 billion to the Treasury Department to support direct lending programs for eligible “mid size” businesses, states and municipalities. The cumulative impact of these loans, he said, will be much larger than Small Business Administration (SBA) loans and they are not designed to be forgivable.
“The liquidity that will be available through this (direct lending) program will dwarf what’s available under the SBA lending program,” Dunn added.
The law also includes a pair of new unemployment benefit programs, which Teitelbaum said includes a temporary 39-week benefit for the remainder of the year for workers who were not previously eligible if they find themselves unemployed due to COVID-19. The other program, he said, is for workers eligible for state-based unemployment and consists of 13 additional weeks of unemployment compensation, which will be equal to the state weekly unemployment benefit, plus an additional $600.
“Under both programs, beneficiaries can get an additional $600 per week from the federal government,” said Teitelbaum. “And perhaps most importantly, there is no impact on employer unemployment insurance contribution at the state or federal level. States will develop agreements with the Department of Labor in order to take advantage of the increased unemployment insurance benefits provided by the CARES Act.”
Rudisill noted that businesses are also eligible for additional tax benefits under the CARES Act. For 2018 through 2020, he said, corporations will be allowed to carry back net operating losses that arose in those years to the five preceding tax years, including years for which the corporate tax rate was 35 percent.
To read more about the CARES Act and other analysis from Akin Gump about the coronavirus pandemic, please click here.
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